REGISTERED COMPANY NUMBER: 13906100 (England and Wales) REGISTERED CHARITY NUMBER: 1198128
REPORT OF THE TRUSTEES AND
UNAUDITED FINANCIAL STATEMENTS
FOR THE PERIOD 10 FEBRUARY 2022 TO 31 DECEMBER 2022
FOR
PRESTON MUSLIM EDUCATION COUNCIL
James Todd & Co Greenbank House 141 Adelphi Street Preston Lancashire PR1 7BH
PRESTON MUSLIM EDUCATION COUNCIL
CONTENTS OF THE FINANCIAL STATEMENTS for the Period 10 February 2022 to 31 December 2022
| Page | |||
|---|---|---|---|
| Report of the Trustees | 1 | to | 3 |
| Independent Examiner's Report | 4 | ||
| Statement of Financial Activities | 5 | ||
| Balance Sheet | 6 | to | 7 |
| Notes to the Financial Statements | 8 | to | 11 |
| Detailed Statement of Financial Activities | 12 |
PRESTON MUSLIM EDUCATION COUNCIL
REPORT OF THE TRUSTEES for the Period 10 February 2022 to 31 December 2022
The trustees who are also directors of the charity for the purposes of the Companies Act 2006, present their report with the financial statements of the charity for the period 10 February 2022 to 31 December 2022. The trustees have adopted the provisions of Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019).
INCORPORATION
The charitable company was incorporated on 10 February 2022.
OBJECTIVES AND ACTIVITIES
Public Benefit Statement
The objects of the charity are the advancement of the Islamic faith, and to advance education.
In setting our objectives and planning our activities our Trustees have given careful consideration to the Charity Commission's general guidance on public benefit and in particular to its supplementary public benefit guidance on advancing education and for the advancement of religion.
Significant activities
The charity promotes education with the provision of the school premises for The Preston Muslim Girls' High School.
Volunteers
The charity is dependent upon its volunteers, who are its trustees, and they perform the charity's work, including all administrative functions.
FINANCIAL REVIEW
Financial position
The company was established on 10 February 2022. Its purpose was to incorporate the affairs of an unincorporated charity. The property owned by the unincorporated charity was transferred to the company in June 2022 and as its predececessor had prepared its financial statements for the year ended 31 August, these accounts include the activities of the charity with effect from 1 September 2022 to its period end date of 31 December 2022 (four months) merged with the antecedent period.
The transfer of the activities of the antecedent charity and its property has been notified to and accepted by the Charity Commission.
The income declared on the Statement of Financial Activities reflects the inclusion of the property owned by the antecedent charity into this company's financial statements.
Investment policy and objectives
The charity receives income from donations and rents generated by investment properties. For the period ended 31 December 2022 the fund generated £124,310..
There are no restrictions on the charity's power to invest. The trustees decided to acquire an investment property so as to provide a regular source of income for the charity, and income from the investment property totalled £130,000.
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PRESTON MUSLIM EDUCATION COUNCIL
REPORT OF THE TRUSTEES for the Period 10 February 2022 to 31 December 2022
FINANCIAL REVIEW
Reserves policy
The trustees have established a charity which contains an investment property. The aim of this is to ensure that from a commercial lease the charity has a guaranteed annual income, that is not dependant upon gifts, donations or legacies.
As the outgoings are kept to a minimum, the charity is able to meet all such costs from its annual income. However, the trustee's anticipate that costs will be incurred to enhance and refurbish the property owned by charity to provide a better resource for its tenants and the pupils of the high school. Any surplus can then be used to support beneficiaries of the charity.
The expenditure of the charity is dependent upon funds generated, and administrative costs are kept to a minimum. In view of this the charity has sufficient reserves to continue for the foreseeable future.
STRUCTURE, GOVERNANCE AND MANAGEMENT
Governing document
The charity is controlled by its governing document, its memorandum and articles of association dated 10 February 2022, and constitutes a limited company, limited by guarantee, as defined by the Companies Act 2006. The liability of members is limited to £1.
Recruitment and appointment of new trustees
Trustees are appointed by the board of trustees, who may also remove trustees should they become unfit to continue in office.
Organisational structure
The charity is managed by its trustees, who meet on a regular basis to address the business of the charity. No trustees receive any remuneration for their services.
Induction and training of new trustees
Training is provided on an ongoing basis and upon commencement for new trustees.
Risk management
The trustees have a duty to identify and review the risks to which the charity is exposed and to ensure appropriate controls are in place to provide reasonable assurance against fraud and error.
REFERENCE AND ADMINISTRATIVE DETAILS Registered Company number
13906100 (England and Wales)
Registered Charity number
1198128
Registered office
141 Adelphi Street Preston Lancashire PR1 7BH
Trustees
Y A Bux Company Director (appointed 10.2.22) I H Patel Charity Trustee (appointed 10.2.22) A S Patel Charity Trustee (appointed 10.2.22) A Bux Charity Trustee (appointed 10.2.22) R Seth Charity Trustee (appointed 10.2.22) A S Isap Charity Trustee (appointed 10.2.22)
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PRESTON MUSLIM EDUCATION COUNCIL
REPORT OF THE TRUSTEES for the Period 10 February 2022 to 31 December 2022
REFERENCE AND ADMINISTRATIVE DETAILS Independent Examiner Mr R H Brain FCA BA(Hons) James Todd & Co Greenbank House 141 Adelphi Street Preston Lancashire PR1 7BH Approved by order of the board of trustees on 15 December 2023 and signed on its behalf by:
Y A Bux - Trustee
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INDEPENDENT EXAMINER'S REPORT TO THE TRUSTEES OF PRESTON MUSLIM EDUCATION COUNCIL
Independent examiner's report to the trustees of PRESTON MUSLIM EDUCATION COUNCIL ('the Company')
I report to the charity trustees on my examination of the accounts of the Company for the period 10 February 2022 to 31 December 2022.
Responsibilities and basis of report
As the charity's trustees of the Company (and also its directors for the purposes of company law) you are responsible for the preparation of the accounts in accordance with the requirements of the Companies Act 2006 ('the 2006 Act').
Having satisfied myself that the accounts of the Company are not required to be audited under Part 16 of the 2006 Act and are eligible for independent examination, I report in respect of my examination of your charity's accounts as carried out under Section 145 of the Charities Act 2011 ('the 2011 Act'). In carrying out my examination I have followed the Directions given by the Charity Commission under Section 145(5) (b) of the 2011 Act.
Independent examiner's statement
I have completed my examination. I confirm that no matters have come to my attention in connection with the examination giving me cause to believe:
-
accounting records were not kept in respect of the Company as required by Section 386 of the 2006 Act; or
-
the accounts do not accord with those records; or
-
the accounts do not comply with the accounting requirements of Section 396 of the 2006 Act other than any requirement that the accounts give a true and fair view which is not a matter considered as part of an independent examination; or
-
the accounts have not been prepared in accordance with the methods and principles of the Statement of Recommended Practice for accounting and reporting by charities (applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102)).
I have no concerns and have come across no other matters in connection with the examination to which attention should be drawn in this report in order to enable a proper understanding of the accounts to be reached.
Mr R H Brain FCA BA(Hons) The Institute of Chartered Accountants in England and Wales
James Todd & Co Greenbank House 141 Adelphi Street Preston Lancashire PR1 7BH
18 December 2023
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PRESTON MUSLIM EDUCATION COUNCIL
STATEMENT OF FINANCIAL ACTIVITIES for the Period 10 February 2022 to 31 December 2022
| Notes INCOME AND ENDOWMENTS FROM Donations and legacies Investment income 2 Total EXPENDITURE ON Charitable activities Support Costs NET INCOME RECONCILIATION OF FUNDS Total funds brought forward TOTAL FUNDS CARRIED FORWARD |
Unrestricted fund £ 82,605 130,000 212,605 88,295 124,310 1,340,979 1,465,289 |
|---|---|
The notes form part of these financial statements
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PRESTON MUSLIM EDUCATION COUNCIL
BALANCE SHEET
31 December 2022
| Notes FIXED ASSETS Investment property 5 CURRENT ASSETS Cash at bank CREDITORS Amounts falling due within one year 6 NET CURRENT ASSETS TOTAL ASSETS LESS CURRENT LIABILITIES NET ASSETS FUNDS 7 Unrestricted funds TOTAL FUNDS |
Unrestricted fund £ 1,447,923 30,345 (12,979) 17,366 1,465,289 1,465,289 1,465,289 1,465,289 |
|---|---|
The charitable company is entitled to exemption from audit under Section 477 of the Companies Act 2006 for the period ended 31 December 2022.
The members have not required the company to obtain an audit of its financial statements for the period ended 31 December 2022 in accordance with Section 476 of the Companies Act 2006.
The trustees acknowledge their responsibilities for
-
(a) ensuring that the charitable company keeps accounting records that comply with Sections 386 and 387 of the Companies Act 2006 and
-
(b) preparing financial statements which give a true and fair view of the state of affairs of the charitable company as at the end of each financial year and of its surplus or deficit for each financial year in accordance with the requirements of Sections 394 and 395 and which otherwise comply with the requirements of the Companies Act 2006 relating to financial statements, so far as applicable to the charitable company.
The notes form part of these financial statements
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continued...
PRESTON MUSLIM EDUCATION COUNCIL
BALANCE SHEET - continued 31 December 2022
These financial statements have been prepared in accordance with the provisions applicable to charitable companies subject to the small companies regime.
The financial statements were approved by the Board of Trustees and authorised for issue on 15 December 2023 and were signed on its behalf by:
Y A Bux - Trustee
A Bux - Trustee
The notes form part of these financial statements
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PRESTON MUSLIM EDUCATION COUNCIL
NOTES TO THE FINANCIAL STATEMENTS for the Period 10 February 2022 to 31 December 2022
1. ACCOUNTING POLICIES
Basis of preparing the financial statements
The financial statements of the charitable company, which is a public benefit entity under FRS 102, have been prepared in accordance with the Charities SORP (FRS 102) 'Accounting and Reporting by Charities: Statement of Recommended Practice applicable to charities preparing their accounts in accordance with the Financial Reporting Standard applicable in the UK and Republic of Ireland (FRS 102) (effective 1 January 2019)', Financial Reporting Standard 102 'The Financial Reporting Standard applicable in the UK and Republic of Ireland' and the Companies Act 2006. The financial statements have been prepared under the historical cost convention.
The presentation currency of the financial statements is the Pound Sterling (£).
Income
All income is recognised in the Statement of Financial Activities once the charity has entitlement to the funds, it is probable that the income will be received and the amount can be measured reliably. Rent is recognised on an accruals basis, and donations are recorded when received by the charity.
Expenditure
Liabilities are recognised as expenditure as soon as there is a legal or constructive obligation committing the charity to that expenditure, it is probable that a transfer of economic benefits will be required in settlement and the amount of the obligation can be measured reliably. Expenditure is accounted for on an accruals basis and has been classified under headings that aggregate all cost related to the category. Where costs cannot be directly attributed to particular headings they have been allocated to activities on a basis consistent with the use of resources.
Allocation and apportionment of costs
Property management costs are those costs incurred to assist the work of the charity, and are support costs in charitable activities. These costs are incurred to ensure that the charity receives the appropriate return from its property investment, and to protect the asset.
Governance costs are those costs that relate to the public accountability of the charity and its compliance with regulations and good practice. Costs of governance are recorded on an accruals basis and the trustees aim to keep these to a minimum.
Investment property
The investment property is initially shown at cost and subsequently at fair value at the reporting date. Any aggregate surplus or deficit being taken to "gains and losses on investment asset" on the Statement of Financial Activities.
Taxation
The charity is exempt from corporation tax on its charitable activities.
Fund accounting
Unrestricted funds can be used in accordance with the charitable objectives at the discretion of the trustees.
Restricted funds can only be used for particular restricted purposes within the objects of the charity. Restrictions arise when specified by the donor or when funds are raised for particular restricted purposes.
Further explanation of the nature and purpose of each fund is included in the notes to the financial statements.
Foreign currencies
Transactions in foreign currencies are translated into Sterling at the rate of exchange ruling at the date of the transaction. Exchange differences are taken into account in arriving at the operating result.
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PRESTON MUSLIM EDUCATION COUNCIL
NOTES TO THE FINANCIAL STATEMENTS - continued for the Period 10 February 2022 to 31 December 2022
1. ACCOUNTING POLICIES - continued
Financial instruments
Financial instruments are recognised when the charity becomes party to the contractual provisions of the instrument. Basic financial assets, which include debtors, prepayments and bank balances, are initially measured at transaction price and are subsequently carried at cost. Basic financial liabilities, which include creditors, accruals, loans and borrowings, are initially recognised at transaction price and are subsequently carried at cost.
2. INVESTMENT INCOME
| INVESTMENT INCOME | |
|---|---|
| £ | |
| Rents receivable | 130,000 |
3. SUPPORT COSTS
| SUPPORT COSTS | |
|---|---|
| Governance | |
| costs | |
| £ | |
| Support Costs | 88,295 |
4. TRUSTEES' REMUNERATION AND BENEFITS
There were no trustees' remuneration or other benefits for the period ended 31 December 2022.
Trustees' expenses
There were no trustees' expenses paid for the period ended 31 December 2022.
5. INVESTMENT PROPERTY
| FAIR VALUE Transfer from antecedent organisation At 31 December 2022 NET BOOK VALUE At 31 December 2022 |
£ 1,447,923 |
|---|---|
| 1,447,923 | |
| 1,447,923 |
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PRESTON MUSLIM EDUCATION COUNCIL
NOTES TO THE FINANCIAL STATEMENTS - continued for the Period 10 February 2022 to 31 December 2022
6. CREDITORS: AMOUNTS FALLING DUE WITHIN ONE YEAR
Other creditors
£ 12,979
7. MOVEMENT IN FUNDS
| At 10.2.22 £ Unrestricted funds General fund 1,340,979 TOTAL FUNDS 1,340,979 Net movement in funds, included in the above are as follows: Incoming resources £ Unrestricted funds General fund 212,605 TOTAL FUNDS 212,605 |
Net movement in funds £ 124,310 124,310 Resources expended £ (88,295) (88,295) |
At 31.12.22 £ 1,465,289 |
At 31.12.22 £ 1,465,289 |
|
|---|---|---|---|---|
| 1,465,289 | ||||
| Movement in funds £ 124,310 |
||||
| 124,310 |
8. CONTINGENT LIABILITIES
At the balance sheet date the charity was facing litigation regarding a property right of way dispute. This has yet to reach Court so the outcome is uncertain. The trustees are confident of a positive outcome in favour of the charity, so at present no losses regarding the litigation, or costs of the litigation, are provided for in the accounts.
9. RELATED PARTY DISCLOSURES
There were no related party transactions for the period ended 31 December 2022.
10. ANALYSIS OF STATEMENT OF FINANCIAL ACTIVITIES COMPONENTS
| Pre Merger Post |
Pre Merger Post |
Merger Combined |
Merger Combined |
Merger Combined |
|---|---|---|---|---|
| £ | £ | £ | ||
| Income | ||||
| Rents receivable 130,000 |
0 | 130,000 | ||
| Donations & legacies | 0 | 82,605 | 82,605 | |
| Expenses | ||||
| Charitable activities & support costs |
(85,079 ) |
(3,216 ) |
(88,295 ) |
|
| Net movement in funds | 44,921 | 79,389 | 124,310 | |
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PRESTON MUSLIM EDUCATION COUNCIL
NOTES TO THE FINANCIAL STATEMENTS - continued for the Period 10 February 2022 to 31 December 2022
11. �ANALYSIS OF PRINCIPAL SOFA COMPONENTS FOR THE PREVIOUS ACCOUNTING PERIOD
| Antecedent Charity |
Antecedent Charity |
Antecedent Charity |
|---|---|---|
| Organisation Company Combined |
||
| £ £ £ |
||
| Total income 130,000 0 130,000 |
||
| Total expenditure |
((14,610 ) 0 |
(14,610 ) |
Net income 115,390 115,390 |
||
| Other gains/(losses) 0 0 0 |
||
| Net movement in funds 115,390 0 115,390 |
||
| Total funds brought forward 1,225,589 1,225,589 |
||
| Total funds carried forward 1,340,979 0 1,340,979 |
||
12. ANALYSIS OF NET ASSETS AT THE DATE OF MERGER
| Antecedent | Charity | ||
|---|---|---|---|
| Organisation | Company | Combined | |
| £ | £ | £ | |
| Net assets | 1,385,900 | - | 1,385,900 |
| Represented by :- | |||
| Unrestricted funds | 1,385,900 | - | 1,385,900 |
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PRESTON MUSLIM EDUCATION COUNCIL
DETAILED STATEMENT OF FINANCIAL ACTIVITIES for the Period 10 February 2022 to 31 December 2022
| INCOME AND ENDOWMENTS Donations and legacies Donations Investment income Rents receivable Total incoming resources EXPENDITURE Support costs Governance costs Legal and professional fees Total resources expended Net income |
£ 82,605 130,000 |
|---|---|
| 212,605 88,295 |
|
| 88,295 | |
| 124,310 |
This page does not form part of the statutory financial statements
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